Obama Ratchets Up Support of Natural Gas Vehicles

President Obama's State of the Union address last week contained a surprising reference to natural gas cars and trucks and omitted any mention of electric vehicles, leaving some to wonder whether the administration is embracing a slight shift in policy.

"This was definitely an admission that we can't bet all our chips on one horse," Thilo Koslowski, vice president and distinguished analyst for Gartner Inc., told Design News. "It's a way of saying we need to be more diversified."

During last week's one-hour speech, Obama did not mention electric cars, instead saying that "this Congress can help by putting people to work building fueling stations that shift more cars and trucks from foreign oil to American natural gas." He also described natural gas as a "bridge fuel that can power our economy with less of the carbon pollution that causes climate change."

A White House fact sheet distributed on January 28 reinforced those statements. It said that the President supports an advanced vehicle proposal that would be "fuel neutral, allowing the private sector to determine if biofuels, electrification, natural gas, hydrogen, or other alternative fuels would be the best fit in different communities."

The President's position is a mild surprise, in light of his commitment to electric vehicles (EVs). In the 2011 State of the Union address, Obama set a goal for EV success, saying he wanted the US to "become the first country to have a million electric vehicles on the road by 2015." To date, however, less than 200,000 plug-in cars have reached US roads. In January, US Energy Secretary Ernest Moniz described the 2015 goal as "a stretch."

Some industry analysts believe that Obama's public acknowledgement of natural gas cars and trucks is a sign that the administration is expanding its view of alternative fuels. "It's probably a sign that things are getting a little more realistic," David Cole, chairman emeritus of the Center for Automotive Research, told Design News. "Given the vast supplies of natural gas we're discovering, you can't ignore it."

Natural gas vehicles have recently been gaining momentum in the automotive market. Ford's 2014 Transit Connect, E-Series vans, and F-Series pickups now offer compressed natural gas (CNG) packages. Similarly, GM's Chevy Silverado and Chrysler's Ram 2500 feature bi-fuel capacity. On the passenger side, Honda continues to market the Civic Natural Gas Vehicle and Chevy will roll out a bi-fuel version of the 2015 Impala. A recent study by Navigant Research also predicted a 16% compound annual growth rate for CNG vehicles by 2020.

Cole said CNG still suffers from low-energy density, causing its tanks to take up undue volume in passenger cars and offer reduced range. But he added that CNG is a "fabulous fuel" for spark-ignited engines. "It's really not a big deal for a car company to make a compressed natural gas vehicle," he told us.

Koslowski believes that Obama's omission of EVs in the State of the Union address was calculated, in part because the federal loans given to some of the electric car manufacturers and battery makers haven't paid off. "He's avoiding some criticism that has been directed at him, some of it rightfully, over the past couple of years," Koslowski said.

He added, however, that he considers the Obama Administration to still be staunchly committed to the creation of electric cars. "This is not about President Obama backing away his commitment," Koslowski said. "He's simply expanding his goals."

I wisk Prresident Obama would have said he wants to encourage natural gas vehicle develpment along with electric vehicles. I think this would energize companis and individuals to compete and provide products quicker. This is not the time to create doubts about which way to go.

Yes, one can pull out an individual circustance to support virtually any position.

You seem to be implying that this single incident disproves the free market-and assuming things would have been better with gov't intervention.

I am not familiar with the street car scandal. However I have noticed that many endevor to "prove" that the freemarket does not work because of the recent housing/financial crisis. But when one digs deeper it comes out that the financial decisions (and many were nasty) were driven by changes to gov't policy to "encourage" lenders to accept more high risk clients. I would want to know more before I accept that the scandal you mention was truely a "free market" situation.

The free market is imperfect. It's critics point this out while comparing it to some mythical utopian alternative (or they just bitch without any real alternative ideas).

Given the choice between the problems found in a free market and those incumbant with great Gummit interventiion I am very hesitant to consider the Gummit as the better direction for the nations people. Especially the poor.

You get it, Bunter. I seriously would not take this 'passing' remark as a hint toward a policy change from this administration. This president has a legacy of both misstatements and saying things to appease his favorite lobbyists groups. Like most other content which originates from that office, I take it like a grain of salt.

So there is a lot of rhetoric and a lot of planning, Chuck, but alot of times the funding doesn't come through or the rhetoric doesn't match the actual support? Is that what you're saying? If so, how typical in American politics!

Bunter, don't forget that if the government doesn't get involved at all you see tragedies like the Great American Streetcar Scandal. General Motors, Firestone and others gobbled up intercity transportation and ran them out of business in order bolster their own businesses. So much for a free market economy.

In my opinion, the statement made by Mr. Cole, "David Cole, chairman emeritus of the Center for Automotive Research, told Design News."Given the vast supplies of natural gas we're discovering, you can't ignore it." has nothing to do with President Obama becoming more realistic about automotive energy but everything to do with our country not having a viable energy policy; if we have an energy policy at all. Environmental impact studies for the Keystone Pipeline have taken five (5) years and we still do not have a decision from the White House. I think the private sector is the most efficient mechanism to drive environmental issues including alternate fuels for automotive. I have no issue at all with promoting use of CNG and feel it can become extremely beneficial if the proper infrastructure is in place. Also, Charles does an excellent job in keeping us up to date relative to automotive in general, including internal combustion engine designs and redesigns. We can't blame it all on P. Obama. Congress must share equal responsibility for what I consider a national disgrace.

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